CMKX, Déjà vu, The Final Episode... Sterling

[Franko10 ™]

CMKX delivered this recent PR to inform shareholders of the situation regarding the suspension. These events were those that caught many off guard to include the company. I will explain some thoughts in two segments; the PR in 12 parts and some older thoughts I discussed in the pass immediately following in some additional parts. Get ready because this is long as I hope you will see how I think the CMKX story will culminate.

Before reading any further, my thoughts are sometimes out there in left field even though I try to affix rationale to them as to how I see things. As I have always stated before, CMKX has always been a stock that one must think outside of the box to try to figure out and understand many things that have been transpiring. Just observing the external variables of CMKX would not stimulate your interest in CMKX. You have to go to that next step beyond or you will never see why so many have become CMKX shareholders.

Over time, many things out of the norm have been transpiring so I have always felt that a resolution would take place out of the norm too. Still, I believe that there will be a resolution to appease the egos and attitudes of all the involved parties to include us shareholders of CMKX.

A stock being suspended is never a good thing, but this is not necessarily a bad thing as it might appear. This forced some cards to be played that would have been played at some later times no doubt. Let me share my thoughts by affixing them to the breaking down of this most recent PR in the link below into 12 parts:
tinyurl.com/43fto

Part 1 From the PR:
LAS VEGAS, Mar 4, 2005 (BUSINESS WIRE) --Commencing at 9:30 a.m. EST yesterday, trading of the common stock of CMKM Diamonds Inc. (Pink Sheets:CMKX) was temporarily suspended by the Securities and Exchange Commission ("SEC"). This temporary suspension will expire on March 16 at 11:59 p.m. EST and trading in CMKX is anticipated to resume on March 17, 2005.

My Thoughts to Part 1:
Whenever there is an expiration date that is given on a suspension, it is a good thing in my opinion. This means that there is s high probability that CMKX will be trading again as stated by the SEC. This is like the USCA saga all over again, but with a different twist of importance.

If this was such a “doom and gloom” development the SEC would have revoked the registration of the securities of CMKX and we would not have been able to trade again. I don’t mean to bring up bad memories for some, but read the link below for an example of a security that has been revoked:
tinyurl.com/5wgxm

The word had gotten out from the Transfer Agent that CMKX was going to allow the world to know what the number is for their outstanding shares (OS). Maybe the SEC felt it necessary and that it would be in the best interest to suspend CMKX. Maybe the SEC anticipated possible extension requests from CMKX not being able to meet the 60 day requirements. Could this mean that the SEC is on our sides as some might not believe? Maybe the SEC knew that suspending CMKX would be doing CMKX a favor.

With CMKX not meeting the 60 day filing requirement, they would have been forced to revoke their registration from trading all together. By suspending CMKX as they did, it now forces CMKX to go through the not trading for 4 days rule and forces CMKX to trade on the grey sheets once trading resume. This now erases any timelines that were in placed for CMKX having their filings turned in to the SEC. If they didn’t mean to do it, they did it and now could actually have been a blessing in disguise. Now they could take as long as they want and don’t have to worry about the SEC time constraints.

[Franko10 ™]

Part 2 From the PR:
In its reasoning, the SEC stated it had concerns over the adequacy of publicly available information concerning CMKX's assets and liabilities, mining and other business activities, share structure and stock issuances, and corporate management. Further, the SEC was concerned that CMKX may have unjustifiably relied on a Form S-8, filed in May 2003, to issue unrestricted securities and that CMKX and/or certain of its stockholders may have unjustifiably relied on Rule 144(k) of the 33 Act in conducting an unlawful distribution of its securities that failed to comply with the resale restrictions of Rules 144 and 145 of the Securities Act.

My Thoughts to Part 2:
The concerns that stick out the most to me are those about the assets, liabilities, and share structure. These are key variables that you would see on a Balance Sheet. For them to have concerns about them, this means that they have finite information that assesses valuation.

Normally, these variables are used to establish a finite amount for liquidation of assets to be disseminated to key entities while a company is going through Bankruptcy procedures. This is not the case here with CMKX. Refresh yourself over these fundamental formulas:

Assets - Liabilities = Equity
Equity ÷ Outstanding Shares = Book Value (BV)

This leads me to think that maybe someone has been brought to the table that will be making a tender offer on the assets of CMKX. This is the only reason why I could come up with why the SEC would even care about those variables in this little old penny stock. Something of a huge value was made manifest to the SEC in my opinion that surprisingly raised some eyebrows.

In my opinion, something of a huge magnitude is known and I expect to see this info released as it can be officially through 8-K’s for announcing material events achieved by the company. This is where things could get tricky. I’ll explain this part later.

An S-8 is what a company use to issue shares to sell to grow the company through a variety of ways. Read a piece from an old informative S-8 article:

www.learnaboutlaw.com/newsletter/v0001.html
Services for Which S-8 May Be Issued, and a Warning

As long as the S-8 prohibitions are avoided, S-8 can be issued in exchange for a wide range of services. Of course, because Form S-8 is not subject to automatic SEC examiner review, the SEC will never advise that S-8 is or is not appropriate. The only way an issuer will ever learn that an S-8 issuance was improper will be if the matter comes to the attention of the Division of Enforcement. Thus, caution is obviously warranted. If an issuer ever doubts the appropriateness of S-8 shares in a particular circumstance, the best course is to postpone the S-8 filing and secure a no-action letter from the SEC.

The SEC has offered a substantial degree of welcome guidance by outlining specific types of compensation for which S-8 share may be issued. Of course, individual circumstances can render these examples worthless. The following services have been explicitly outlined by the SEC as examples of services for which S-8 stock may be issued:

• Consultants who provide traditional product or corporate image advertising (except when done to promote a company's stock).
• Business development consultants retained to identify another company as a potential partner for technology development.
• Consultants who advise the issuer on business strategy or compensation policies.
• A consultant who arranges a bank credit line.
• Attorneys who represent an issuer in matters not relation to its securities, such as litigation defense, securing U.S. Food and Drug Administration approval, or obtaining a patent.
• Attorneys who prepare the issuer's Exchange Act reports and proxy statements.
• Attorneys and other consultants who assist an issuer in identifying acquisition targets, or in structuring mergers or other acquisitions in which securities are issed as consideration, unless the acquisition is a typical reverse merger.

Where To Go for More Information

The Securities Lawyer's Deskbook, at www.law.uc.edu/CCL/intro.html, contains the full text of the basic U.S. securities laws and regulations, as well as SEC forms. For the last word on S-8, the SEC's Final Rule Release No. 33-7646, issued in early 1999, noted S-8's various abuses, and directed strict rules for the issuance of S-8 shares. You can find this release at www.sec.gov, and it is an invaluable resource for a company researching S-8 shares.

As for the rule 144 for selling of restricted shares, I recommend familiarizing yourself with the SEC link below for a better understanding:
www.sec.gov/investor/pubs/rule144.htm

Any of the S-8 and rule 144 stock concerns should simply be rectified by CMKX paying for what was incorrectly executed through shares or money to undo anything that was done if deemed necessary. In short, this issue will be quietly discussed and fixed behind the scenes in my opinion. I don’t expect to see much more brought out to the public on these issues. I think it’s easy to see how anyone could have made these mistakes if any were made. This might simply be resolved through a minor explanation in my opinion.

These are issues that the SEC do not look for and only examine if certain related matters are brought to their attention for review. This only proves what we knew all along. Hmmmmm

[Franko10 ™]

Part 3 From the PR:
CMKX has been in discussions with the SEC in relation to the SEC's inquiry into another public company that has done business with CMKX. In this process, CMKX has provided the SEC with substantial documentation, much of which spans back to transactions and stock issuances in 2002. It is believed some of the information provided raised concerns with the SEC sufficient enough to cause this temporary suspension of trading. CMKX anticipates a formal request for documents to be issued by the SEC in the near future.

My Thoughts to Part 3:
The only thing I can think of is the dealing with Dia Bras Exploration, Inc. as stated below:

www.findarticles.com/p/articles/mi_m0EIN/is_2002_Dec_16/ai_95436749
LAS VEGAS--(BUSINESS WIRE)--Dec. 16, 2002
Casavant Mining Kimberlite International (OTCBB:CMKI ) announced
today that negotiations are underway to acquire 60% of the common
shares in Dia Bras Exploration, Inc., a Canadian diamond exploration
company with projects in Canada and the Republic of Guinea, West
Africa.

Dia Bras Exploration, Inc. Recent Quote:
finance.yahoo.com/q/bc?s=DIB.v

Website:
www.diabras.com

I don’t know much on this except that it was something that should have transpired many moons ago. This is the only thing that I could come up with to what the SEC might be referring to. Also, here is another piece in that old PR that might have raised some eyebrows…

... Dr. Ed Walker, a consultant to Kennecott and KWG made the following statement: "Diamond quality and size distribution including the recovery of a quarter carat diamond from a mini-bulk sample, indicate that the commercial size and gem quality diamonds are present in these rocks. Excellent infrastructure, size of the deposits and favorable diamond quality and size distributions suggest a strong potential for the presence of economic diamond deposits in the area."

This could be a now huge piece in the valuation of CMKX that has been submitted to the SEC. This could have been the trump card that CMKX has been holding all along.

Part 4 From the PR:
"The SEC did not provide us with any notice of the temporary trading halt," stated Urban Casavant, CEO of CMKX. "This was an unwelcome surprise, especially since our counsel has had ongoing dialogue with the SEC."

My Thoughts to Part 4:
I read this to mean that Urban and TEAM CMKX had been in contact with the SEC and was led to believe that they had established a rapport with them that would have prevented any of this from happening. This not only caught shareholders off guard, but also Urban and the rest of TEAM CMKX.

This also leads me to think that Urban and TEAM CMKX had a bond of trust that they thought was an agreed upon relationship that held value. Urban and TEAM CMKX is not going to allow this mishap to ruin their bond, but they are making it known if they could just coordinate amongst each other a bit better before forcing these type of repercussions.

Part 5 From the PR:
According to the SEC's Web site, www.sec.gov, "The primary mission of the SEC is to protect investors and maintain the integrity of the securities markets." Consistent with this mission, Casavant specifically engaged Robert A. Maheu to assist CMKX in its compliance efforts. "Like the SEC, protecting our investors is a primary concern. We have been aggressively gathering the essential information needed to comply with our public disclosure obligations and anticipate working with the SEC to ensure our compliance with all federal regulations," stated Maheu, co-chairman of CMKX.

My Thoughts to Part 5:
This is Urban saying to the SEC that CMKX is a legit company and both the SEC and CMKX have the investors’ best interest at heart to ensure protection for the investors while maintaining the integrity of the securities market. He is saying that he even brought on board Robert A. Maheu who is world renown for his achievements for them to further enhance any credibility issues that the SEC might think exists.

We all are familiar with our new legal TEAM of experts hired by Robert A. Maheu, the Stoecklein Law Group. This might be Urban saying to the SEC to please review this “Maheu” guy’s resume’. This might be Urban telling the SEC that you really might not want to make this “Maheu” guy mad if you really don’t have your facts together because he probably knows your bosses boss and is willing to see if we can come to a peaceful resolution so please work with us in making this work out righteously, legally, and peacefully.

This is Urban saying to the SEC that he understands that they know about the MMs naked shorting CMKX and understands why the SEC is really trying to remain as neutral as possible in their position as it is a sensitive one between the MMs and CMKX. Urban urges that protecting the shareholders is of primary concern.

Personally, I think that the SEC could get a fair deal of compensation worked out since Urban publicly announced the share structure to justify public accountability of shares and that they are tightly held. This now puts the ball in the court for the SEC to force the MMs to do something through a possible deal because if revealed, it could be too detrimental to the market.

This is why the SEC feels that it must remain neutral to the concerns of the Market Makers and CMKX. The SEC feels that they must do so because it would just be too much for them to prove for or against CMKX and/or the MMs. A happy agreed upon resolution would work out in the best interest of everyone with everyone having the shareholder’s best interests at heart as their primary concern.

[Franko10 ™]

Part 6 From the PR:
"We are not letting these regulatory matters impede our primary focus of creating stockholder value through the mining and development of our mineral assets," stated Maheu. CMKX is continuing to search for additional property claims in Canada and monitor its holdings in Ecuador.

My Thoughts to Part 6:
I take this as Urban and TEAM CMKX saying although you all have implemented some actions that could be proven ignorant for not knowing all the facts, we will comply. However, in doing so, we will not allow the ignorance of the SEC to impede the forward movement that we have been working on all of this time.

Before some of you take this the wrong way by me using the word “ignorant,” know that we all are “ignorant” in our own ways. Ignorant means nothing more than someone who does not know all the facts. So in reality, we all have some forms of ignorance because none of us know all of the facts about everything.


Part 7 From the PR:
On Feb. 17, 2005, CMKX filed an amended Form 15 to reinstate its reporting obligations under the 34 Act. SEC regulations require CMKX to file, within 60 days after the date of the filing of the amended Form 15, all reports which would have been required had the original Form 15 not been filed. CMKX has not been provided a waiver, "variance" or any other relief by the SEC for complying with the 60-day requirement. In fact, due to the overwhelming number of reports that need to be filed, coupled with the necessary financial statement preparation, CMKX will not be able to comply with the 60-day requirement. Management does not believe the filing of the amended Form 15 had anything to do with the SEC's decision to temporarily suspend trading in its common stock and continues to aggressively do everything within its power to comply with its 34 Act reporting requirements.

My Thoughts to Part 7:
This is what I think started the ball rolling to see if CMKX is a security that should be on the SEC Threshold Security list. In this paragraph, CMKX has clearly stated that they would not have been able to meet the 60 day time constraints placed on them to file by the SEC for a plethora of reports/reasons to include the all important financial statements.

This puts another twist of consideration on things now. This is why I have titled this post as I did because now this will bring us back to an experience that we have already experienced once trading resumes on 17 Mar 05 (if it resumes). CMKX will do 1 of three things. CMKX will either have price increases working towards establishing new highs or CMKX will trade as we always have been as of late with a “bid” of .0001 by an “ask” of .0002 per share or CMKX will go back to no “bid” by an “ask” of .0001 cent. Let’s talk about the later two first.

I think that as a worse case scenario, CMKX will give us some feelings of Déjà vu no matter what happens for the good or bad. With CMKX publicly announcing that they would not have been able to make the 60 filing constraint will be interpreted by some to mean that they have time to sell at .0001 cent to go play other stocks and come back to CMKX. This might take CMKX back down to no “bid” by an “ask” of .0001 cent.

This is a fair thought and people should not be bashed if that’s the decision they decide to make. However, there are reasons that could cause the price of CMKX to significantly increase at any time beginning on 17 Mar 05 when they are expected to resume trading. These are only part of the dilemmas we face with our decision to buy, sell, or hold CMKX. No matter what risks we choose to take, people will have to be responsible for whatever decision they make while respecting the decisions made by others. Make sure you truly evaluate and use logical deduction for making your decision to buy, sell, or hold CMKX and any stock.

I have chosen to not entertain discussing the not resuming to trade option for SEC stated reasons that stated that CMKX will resume trading on 17 Mar 05.

Part 8 From the PR:
With its reporting status reinstated, CMKX anticipates filing a number of significant corporate updates with the SEC in the upcoming weeks on Form 8-K. Investors and stockholders are encouraged to review these forms as they become available through the SEC's EDGAR database.

My Thoughts to Part 8:
To piggy back on the previous paragraph’s thought, the filing of an 8-K could change any reasons one might have for selling CMKX. Companies file an 8-K to inform the public of material events that transpire that are significant and to inform the public of key corporate changes within the company.

I will keep this simple by saying that for CMKX to even make mention of the filing of an 8-K as they did in the PR during these critical times, leads me to think that they either have something huge to inform us about within the corporate structure or seriously have something of a huge magnitude for valuation to inform us shareholders. I think what we see filed in an upcoming 8-K is going to be what attracted Robert A. Maheu and Michael Williams to join the CMKX TEAM as board members.

Besides, the way they keep saying to stay on the lookout for anything being filed is another huge subliminal hint to me that they are about to make some huge revelations to the benefit of CMKX shareholders. Keep in mind, everything you have thus far read and will continue to read are only my opinions.


Part 9 From the PR:
The SEC's Web site further discloses, "The laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it." Casavant reiterated, "We understand the importance of supplying accurate information to the public and have made it our top priority to uncompromisingly disclose all material corporate information as soon as it becomes available."

My Thoughts to Part 9:
I think this is Urban telling the public and the SEC that they appreciate what the SEC stands for and what they are doing, but that CMKX is fully aware and understand what is on the SEC website for complying with the laws and rules of the SEC. I think this is Urban also telling the public and the SEC that they understand how important it is to do things right through the eyes of the SEC for compliance purposes to not break any laws and rules. I think Urban is saying that they have been and will continue to comply and be aware of the laws and rules of the SEC and suggests that all individuals make themselves aware too by visiting the SEC website. Heck, I’m starting to thing that Urban might have caught that some of the SEC concerns with CMKX are not consistent with the information posted on their website for being laws and rules. Maybe so, maybe not.

[Franko10 ™]

Part 10 From the PR:
Consistent with CMKX's continuing efforts to furnish the investing public and its stockholders with current information and to quell any inaccurate rumors, CMKX has disclosed certain corporate information pertaining to its operations and corporate structure. Of the 800 billion authorized shares of common stock, CMKX currently has 703,518,875,000 shares of common stock issued and outstanding to approximately 2,032 stockholders of record (excluding shares held in "street name"). In addition, effective March 1, 2005, CMKX has relocated its executive office address to 5375 Procyon St., Suite 101, Las Vegas, NV. Lastly, CMKX's current officer is Urban Casavant (CEO/President/Secretary/Treasurer) and current directors are Urban Casavant and Robert A. Maheu (Michael Williams will join the board of directors upon CMKX's obtainment of D&O insurance).

My Thoughts to Part 10:
In the post below, I tried to reflect the disparity between the OS and the shares transacted through the DTC to account for the CMKX OS for facilitating the USCA and CIM dividend distributions. As you can see from the post below, the original USCA dividend multiple was .0000155 which later changed to .00000962 cent(s). The CIM dividend distribution multiple was originally .028 cents which later changed to .0256 cents. Read the post below I made in Aug 04 to see a quick example as I had made more references with the updated ratios throughout other posts and discussed a bit in Paltalk months ago as some might remember for a quick familiarization.
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=72049

Let’s familiarize ourselves with the updated distribution multiples for USCA and CIM to examine the huge disparity in what the OS should be for CMKX by using the distribution multiples confirmed by regulatory authorities:

USCA Confirmed Distribution Multiple = .00000962
CIM Confirmed Distribution Multiple = .0256

The USCA Dividend Shares to CMKX = 7,500,000
The CIM Dividend Shares to CMKX = 40,000,000,000

The USCA Calculated OS for CMKX
7,500,000 ÷ .00000962 = 779,625,779,625

The CIM Calculated OS for CMKX
40,000,000,000 ÷ .0256 = 1,562,500,000,000

These numbers should match for showing the same OS amount. They don’t and reflects a huge portion of shares that are not accounted for.

1,562,500,000,000 – 779,625,779,625 = 782,874,220,375

782,874,220,375 – 75,000,000,000 = 707,874,220,375 Shares “Not Accounted For”

The 75,000,000,000 is the amount account for from the Nevada Minerals retraction. I think the key thing to look for is to see if the SEC will be placing CMKX on the Threshold Security list anytime after 17 Mar 05. If so, get prepared some huge transformations of this stock.

If the CIM shares were paid out on 20 Million and not the 40 Million, then that would account for the disparity. If CMKX do not appear on the Threshold Security list in the near future, then such would be the case and this would mean that there is a good chance that there is not a naked short position in CMKX. It still wouldn’t affect the outcome of anything. If this is the case, consider some later thoughts I have in this post concerning CIM as some options to consider for speculation.

There are some more things that are important within this paragraph. Anything in this PR that was in error should have been retracted already as far as I see it. I think that some of the things were mentioned in the tone it was to deliver certain messages to the public and the SEC.

Let’s focus on a key portion in particular within this paragraph:

...Of the 800 billion authorized shares of common stock, CMKX currently has 703,518,875,000 shares of common stock issued and outstanding to approximately 2,032 stockholders of record (excluding shares held in "street name").

There are two ways to read this. One way is to read this as the company telling us that 2,032 shareholders or “group of shares in certificate form” account for the 703,518,875,000 shares issued and outstanding. This would mean that there is no confirmed naked short position in CMKX and that total would include every single share of CMKX that have transacted through the DTC.

Well, the CMKX Transfer Agent already stated that the number does not match every share that has transacted through the DTC because they have no way of knowing that information. They account for any of the official shares that are govern through the company in certificate form. Only the DTC would know the for sure amount of shares that have transacted through the DTC.

Since the company added the piece in parenthesis above, I think that we are to interpret it as meaning that there is a huge portion of shares unaccounted for which is the difference from the actual shares within the Transfer Agent and the confirm number of shares transacted through the confirmed coordination of shares that have transacted through the DTC during the dissemination of previous dividends. Remember that it was Roger who coordinated with the DTC to pay out the dividends, not the Transfer Agent.

I take this as Urban telling us that they he can account for the 703,518,875,000 shares in certificate form even if it is in increments of shares to narrow the total down to 2,032 shareholders in total or increments of shares. I believe the last known report for total number of CMKX shareholders was a total of over 72,000+ shareholders. I believe that a small portion is within that group of 2,032 shareholder certificates, but not all of them. Focus on the word “excluding” in the paragraph above.

The word “excluding” is telling to me to interpret this as meaning to “do not” include the thought of “shares” not “shareholders” in the portion immediately discussed beforehand.

Let’s break this down a step further.

Shares Held in Street Name = Float
Float = DTC Transacted Shares
DTC Transacted Shares = Legit Float + Illegit Float

Hmmmmm

Shares held in street name would be us. Those naked shorted shares make up the illegal float. Every single share that is placed into our brokerage account, be it naked short or non-naked short, must transact through the DTC when coming from the MMs. This is why that portion in parenthesis is very important for consideration.

If it was something not significant to consider, they would not have even put it in the PR, especially in PARATHENSIS and to further put the words “street name” in QUOTES. This is a huge subliminal hint to deliver the message to the public that the CMKX Float is gone and that there is a huge naked short position existing in CMKX. Now that the SEC has official information and confirmation of the CMKX OS, if we never show up on the SEC Threshold Security list then we would have to consider that there is not a naked short position that exists in CMKX. Still, it would not change anything with the forward movement in CMKX if such is the case. You’ll see why as you continue through this post.

Part 11 From the PR:
Investors and stockholders are being asked to please refrain from contacting the company, the SEC, NASD, the Transfer Agent and/or Stoecklein Law Group to allow them to focus on completing the tasks at hand. All corporate updates will be made in press releases and filed in current reports on Form 8-K as they become available.

My Thoughts to Part 11:
I take this as Urban telling us to go on with our lives and that CMKX is probably not the only stock he has in his portfolio. I take this as Urban saying that it’s fair to move on while still continuing to believe in CMKX too. This is Urban saying that he understands.

This is Urban telling us that many of you have slowed down progress by being diligent CMKX shareholders but overly concerned shareholders that have force way more time to be dedicated towards redundancy than any of us as shareholders could imagine for causing delays in the forward movement of CMKX.

This is Urban telling us that something very huge could very well be coming to completion and we really do not need to mess things up by being impatient from lack of knowing all the facts.

This is Urban telling us to stop worrying and to trust him and TEAM CMKX as 8-Ks will be released to inform shareholders of significant events that will be the facts. This is Urban saying that you trusted him and TEAM CMKX all of this time, you might as well wait it out to see that ALL IS WELL!

[Franko10 ™]

Part 12 From the PR:
CMKX also would like to repeat the SEC's statement of, "At the heart of effective investor protection is an educated and careful investor" and encourage its stockholders and other investors to visit the SEC's Web site (www.sec.gov), which offers the public a wealth of educational information.

My Thoughts to Part 12:
This is Urban delivering the message that shareholders are not as ignorant to the investing laws and rules as some regulatory authorities might think. This Urban saying to all of the wise CMKX investors that there might be some things that are very apparent within the SEC website that will answer many questions as to provide further direction for the CMKX situation.


OPTIONS FOR CMKX TO GO AWAY:

The CIM solution
I think CIM will be the ultimate trump card to be played by CMKX no matter what. I think that there is a chance that we could be getting more CIM if things happen as I anticipate. I think that there is a good chance they we might have restricted shares of CIM and free trading shares of CIM. I am not sure, but this is what I would consider doing if I was Urban and TEAM CMKX with the use of CIM.

To keep the math simple, let’s max out the OS to be 800 billion. The ratio for receiving CIM shares was .0256 cents. I want you to ask yourself some questions, but consider some more key thoughts before doing so. Let’s imagine that you owned 10,000,000 shares of CMKX that you bought at .0002 cents. That would mean that you spent $2,000 for your shares. The bid was a consistent .0001 cent so that means that you would have only been able to get $1,000 in actual value for selling your shares of CMKX.

Consider now that your 10 Million shares would have brought you the below amount in CIM shares from the dividend distribution multiple that was used from coordination with the DTC, Roger Glenn, and the NASD officials.

10,000,000 x .0256 = 256,000 shares of CIM (restricted shares)

Now consider if CMKX was to do a reverse merger into CIM. Yes, a reverse merger. Why would they do this? Well because in the CIM dividend PR, it was stated that CIM would not be trading on the Pink Sheets. I would have to guess that if we have the valuation that we have always been anticipating, CIM would open up on the AMEX or the NYSE. This means that I would have to guess that it would probably open well above the minimum requirements at no lower than $5.00 per share supported by the zinc that was PR-ed to be placed into CIM and the added valuation that would have been placed into CMKX otherwise.

With rounding off and using 800,000,000,000 as a worse case scenario for an OS, the 40,000,000,000 would warrant a 1 for 20 reverse merger of CMKX into CIM. This means that you would have your 10,000,000 of CMKX converted over into CIM at the ratio of 1 for 20 for a total amount of 500,000 shares of CIM at $5.00 per share. That’s a value of 500,000 x $5.00 = $2,500,000 from your old CMKX position (these would be free trading shares).

To add, you still would have your 256,000 shares of CIM (restricted shares) given to you as an earlier restricted dividend too. This means that you would have two groups of CIM shares, one restricted while the other free trading. You would have a long term position and a short term position.

That’s another:
256,000 x $5.00 = $1,280,000 Value from Dividend

Your Total CIM Value:
$2,500,000 + $1,280,000 = $3,780,000 Total Value

So, back to the questions I hinted to earlier. Would you rather CMKX not do a reverse merger, which would in essence have the same effects of a reverse split on your shares, to leave you with the $1,000 value in your 10,000,000 CMKX shares at .0001 cent? Or would you rather value be placed into your CMKX position through a reverse split effect and position your 10,000,000 shares of CMKX at $1,000 in actual value to be converted into 500,000 shares at a minimum of $5.00 per share and a value of $2,500,000 while existing as CIM?

A reverse split is usually not a good thing, but for CMKX to reverse merger into CIM would not generate a high ratio for merging to give us a better stock fundamentally with enhanced value in our shares. This is only an option that would also reduce the naked short position by 20 therefore making covering not such a burden for the MMs to run CMKX up to an agreed upon price knowing that they would have 20 times less the OS for covering. Everyone would win! If an announcement is made of CIM going to a major exchange first, then a reverse merger of CMKX into CIM, the MMs then won’t have a choice but to accelerate any covering to keep from having shares caught out there uncovered after the merger execution/pay date transpires.

This is when the MMs would have to go to Urban if many of the current CMKX shareholders decided to hold strong for the CIM reverse merger. They can’t cover if they don’t get anybody to sell any shares. Remember this piece in the most recent PR:

” (excluding shares held in "street name")”

That would be us, the legit and illegit float as I mentioned earlier. They would need for Urban to release some of his accounted for shares into the market to allow for the MMs to cover before the merger because of not having enough CMKX shareholders sell their positions.

Now we can rid the 1 for 20 reverse merger thoughts by thinking that Urban will retire the CMKX OS down to 19,958,419,958 shares to match CIM for a 1 for 1 merger. This is what Urban would call the giving of those shares to the MMs to help them cover. We are still expecting to see a number for the shares retired. Read how I derived that number below:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=96344

This number could fluctuate depending upon how much actual covering the MMs do without the help of Urban and the SEC. I think that the goal all along could be for CMKX to go away, but live on through the successes of CIM as through the plan of “Operations Dividend” as I had post a long while ago. Please refresh yourself with the post below as to why I tried to explain and prepare shareholders for a large OS and why:

Operations Dividend
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=60142

Let’s discuss the next thoughts that could be an option.

The Acceptance and Execution of a Tender Offer after Retiring of shares:

Back in Feb 04 thru Apr 04, I discussed how I believed that Urban was retiring shares under a constructive motive that would warrant a rectification of the OS that we deemed to be broke. For a better understanding about retiring shares, first please read the link to the post below:
ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=228&submit=Go

Urban knew that CMKX was being naked shorted to the extreme. Maybe this is how he came up with the name CMKX-treme for the race car. To fix this problem, he knew that he had to be able to establish some type of leverage to use for fixing the naked shorted issue while forcing the MMs to pay for what they had taken from CMKX investors.

This is going back to explaining where all of that volume was coming from that was going through with CMKX back when CMKX was trading at .0001 cent in the late 2003 and early 2004. What if Urban and the Insiders bought back a certain amount of shares over the listed amount of 10,000,000,000 Authorized Shares (AS) that was officially listed before the major increases of the AS at that time? Let’s say that these are shares being held in account A.

This then creates a scenario to where Urban would have now raised the AS to 800,000,000,000 shares to account for a certain amount bought above the AS. So what does this do? Well, this allows Urban to be able to legitimately use 800,000,000,000 shares as leverage by now making issued and outstanding 790 Billion shares to sell into the market to use for funding the entire operations that he and Insiders probably only paid 790,000,000,000 x .0001 = $79,000,000 to internally create this funding that they knew tat they would be getting back through the covering and or retiring process.

This $79,000,000 is free funding because Urban would later retire these shares back to the Treasury to put that value back into CMKX. To do this, he had to publicly declare the known amount for the CMKX OS. He could not have retired these shares if they did not exist. So, Urban had to make these shares first exist by making them issued and outstanding. This creates a public accountability of the existence of these shares. Now, he can retire these shares to account for making them nonexistent. This is what I think we would be seeing.

All of this could be done under the thoughts that a tender offer would be made and accepted by another entity. Let’s use rounded numbers to keep the math simple and say that Urban now retires 700 Billion shares. This means that the entity making the tender offer would now only have to pay on the 3+ Billion shares as a tender offer is paid on the amount of shares outstanding.

In the PR we have to focus on what was “intentionally” put in the PR for a reason in my opinion. Look below again:

” (excluding shares held in "street name")”

This is a subliminal message stating that they know that there is a naked short position that exists in CMKX. The entity making the tender offer would only pay on the OS. There was a huge disparity between the actual CMKX OS and the actual number of CMKX shares that had originally transacted through the DTC. CMKX could now officially go away after accepting the tender offer to be bought out and leave the fixing of these naked shorted CMKX shares in the hands of market regulatory officials such as SEC, DTC, NASD, MMs, etc.

[Franko10 ™]

Maybe it will never even get to this point. Why Citigroup bought out NITE. Remember that NITE was publicly revealed for naked shorting CMKX as published by the Wall Street journalists a few months ago. Seeing Citigroup on the racing car of CMKX was yet another subliminal hint to say that any issue that NITE had with CMKX has been or will be dealt with to the likings of both parties to include any naked shorting issues. They could have resolved this issue through some sort of underwriting to a higher exchange of CMKX or CIM if I had to guess since underwriting is something I observed on Citigroup’s website as a feature they do. Remember that CIM was PR-ed to be opening up on a higher market so that should lead us to think IPO. Only more food for thought.

Taking CMKX Private
Taking CMKX private would have the same effects as I mentioned above with the acceptance of a tender offer. These are some very similar and familiar thoughts that we discussed in Paltalk months ago as an option for a CMKX resolution. The only main difference with CMKX going private versus a buyout is that it would be like the company buying out us CMKX shareholders and not an outside entity.

Look at it like this. Urban is telling us in this most recent PR that he has an accountability of where all of the legitimate shares are. The AS is pretty much maxed out with 703,518,875,000 shares issued and outstanding so it would not raise further red flags of accountability to be directed towards CMKX for resolution about there reasoning for raising the AS to 800 Billion.

Can you imagine if Urban owns that entire number? This would be like Urban moving money from his left hand to his right hand by buying out CMKX out from up underneath us CMKX shareholders. It would be like him buying out himself while making sure we get paid fair compensation through a resolution of the price he names for either the DTC or MMs to pay for our naked shorted shares. Filing all of this valuation is what would force the DTC or MMs to not question the valuation that could be named for the price of our CMKX shares for taking CMKX private. This is why they are working so diligently on the fillings still.

The DTC is responsible for making sure that the MMs pay for this while the SEC is responsible for regulating the matter. However, if the MMs couldn’t pay for the covering of the naked shorted position to unofficially close out the naked short shares in this tender offer of going private in this example, the DTC would force the MM out of business and the DTC would be stuck to tap into their Treasury of funds that hold “trillions” of dollars. Trust me, they can afford it.


The MMs Buyout of CMKX
The MMs could always double short to “Double Short to Double Cover” to buyout better position themselves for covering CMKX, especially if CMKX goes private and they are forced to compensate CMKX shareholders to fix what they broke through naked shorting. Please read the post below for a better understanding of how they could do this to keep them as a MM from going out of business:
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=47359

If Urban is doing any of the above, I would like to see him execute Infinite Valuation before executing the elimination of CMKX.
ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=47402
This would create maximum covering effects and he would be the first to make this type of fixing any naked shorting problem a huge piece in history. I think he’s going to do it anyway, but Infinite Valuation would be awesome. Ok, it was just a thought.


To Close
With this recent CMKX news, the MMs are expecting to have a sell-off at .0001 cent once trading resumes for CMKX on 17 Mar 05. This would put them in a position to cover a huge amount of shares, plus they can “Double Short to Double Cover” to keep them from being put out of business as I had mentioned above.

There was a time that I was telling people to "call the puppies out the woods" on CMKX back when CMKX was at no “bid” by .0001 at the “ask” back in Feb 04 time frame. I anticipate that there is a chance that we might revisit that same situation again and I am saying to consider going through what I was trying to tell many then to take place all over again, but this time better. I say this because believe it or not, I am still coming across people daily that have not heard of CMKX and asks me often if they should take a position to take the risk. This is like déjà vu all over again to me. The stage has been set for some time now and is continually being set day by day.

Again, it will be just like the last time, but better this time. I told people for months to consider locking into a position in CMKX when it was originally at no “bid” and the “ask” of .0001 cent. Then I recommend again that they utilize the "$200 to $200,000 Transformation Process" to clear profits and capture your original investment.
www.ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=450

As I stated before, there will be those who will chase it and get mad at me because they bought in at higher levels other than the .0001 cent. Later they will understand where to place blame after they calm down. Still, again, if CMKX resumes trading, I expect that you might be able to risk holding for a lot more than a double, but you must make your own decision as to when to sell as you did when you bought shares in CMKX. The ultimate responsibility will remain within you.

Next, I want to try to get everyone to see something that I have been trying to get everyone to see for months. It’s ok to believe in CMKX and believe in other stocks too. Stressing out over CMKX is not going to do anything, but take years off of your lives. With CMKX, and any other stocks in the market, we as shareholders have no control over its outcome. Learn to accept this and not allow the ups and downs to alter your personality to where you convert to showing on the outside a negative hearted person that I believe many of you not to be.

I have already forgiven all of you that have had any battles, disputes, disagreements, etc. with me during these times of being CMKX shareholders. Many of you were not bad people, but investors who were nothing more than concerned investors concerned about their investment. We all have different ways of how we handle pressure. Hopefully your time in this environment will help you to become a better investor/trader, but most of all, a better person.

So I say to you all to relax, learn to discuss other stocks, and still remain just as strong in your belief in CMKX as you feel your DD allows you to be. This should be respected by all as we work towards not only to become wealthy in our pockets, but in mind, souls, and heart.

There was life before CMKX, there will be life during CMKX, and there will be life after CMKX. Well, life after CMKX might be passed on through another stock. Still, CMKX I’m sure will continue to live on in the minds of many forever.

With CMKX and any of these penny stocks, my thoughts are that they are still better than a mutual fund for bringing in more gains, but you exchange more gains with more risk. Many of you have always heard me state that over 90% of the penny stocks fail in the long run, but present huge room for gains in the short run. So people should always understand the risk and how they are to trade and/or invest into a stock while accepting responsibility and not placing the responsibility and blame on others.

With CMKX, I still think that when the dust clears, Urban, TEAM CMKX, and us CMKX shareholders will be victorious. Actually, I think things have already been put in place so that at least we won’t lose.

Anybody with thoughts to discuss about this post or any other thoughts can often catch me in Paltalk sometime in the evenings either at or slightly after 09:00 PM EST. I would like to talk to people verbally to discuss any thoughts in Paltalk in front of the masses. Heck, or call me at 210-387-7957 to discuss and explain to me how I am out in left field in these thoughts with CMKX or any other stock. I am always willing to learn. Trust me, it won’t hurt my feelings to prove me wrong on anything. I’ve been there before and I am sure that I will be going there again. LOL

All of the above thoughts have “not” been confirmed to be facts and are nothing more than my thoughts in the world according to Sterling so please don’t take these things to be the gospel. Only use the above thoughts as food to stimulate other thoughts to possibly help us shareholders. All I have ever tried to do was to help individuals help themselves for obtaining prosperity. I am sorry for those who have somehow misinterpreted my intentions to be those of trying to mislead or manipulate. I promise you that such will never be the case. I am predicting that prosperity is almost upon us in one form or another!

All is well!
www.sterlingsclass.com/
;-)
STERLING